Indonesia’s thermal coal export shipments to ex-China markets in Asia fell sharply last month as renewed demand from Chinese power utilties resulted in higher coal prices, deterring exports to other countries, CoalMint’s vessel line-up data revealed.
Indonesian 5800 Kcal/kg GAR grade thermal coal prices rose by 8% last month to $178/t FOB as Chinese power utilities raised overseas purchases for winter restocking and tight supply conditions in Indonesia following heavy rainfall. Export shipments to China rose by 41% m-o-m at 11.4 mnt.
Indonesian Thermal coal Trade Flow
*Qty in mnt
Exports to Asian countries
India: Export shipments to India fell for the fourth-straight month in September amid easing power demand for monsoon and rising domestic coal supply. Higher premiums offered by Indonesian miners with the renewed Chinese demand also dampened any major buying activity from India.
South Korea: Elevated Indonesian coal prices led to lower spot bookings from South Korea in September as state utility KEPCO has been raising bulk import tenders over the last few months to secure sufficient coal inventory for winters.
Japan: Long-term coal contract with Australian miners led to lower demand for Indonesian coal in the Japanese markets.
The rise in prices led to lower demand in emerging Asian markets of Phillippines, Malaysia, and Taiwan.
Exports to the Netherlands surge
Indonesian thermal coal exports to the Netherlands rose by a whopping 302% last month as gas supply from Russia declined with the maintenance of Nord Stream 2 pipeline.
The country predominantly has not been a buyer of Indonesian coal. However, elevated global fuel prices prompted utilities in the country to secure supply for the upcoming winters.
Outlook
Indonesian coal export shipments are gaining strength in the coming months with the strong winter restocking demand in Asia and Europe. Chinese demand is seen remaining strong amid elevated domestic coal prices.
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